Is Employee Recognition in the Workplace Worth It?

Let’s start this with two alarming stats based on a 10-year study with over 200,000 employees.

• 79% of employees who quit their jobs cite a lack of appreciation as a key reason.
• According to a Gallup report, only 21% agree their performance is managed in a way that motivates them to do outstanding work.

You might then think that building out recognition programs would be among the first things a company may tackle when blueprinting their culture. Spoiler, It’s not. To the contrary, it’s often met with severe skepticism and probably fairly so as it can be difficult to quantify and qualify the ROI on programs like these. Let’s dive into and address some of these concerns and questions often brought up by the executives making the decisions on whether or not to add a recognition program to their retention and talent happiness strategy.

How Does Recognition Affect Workplace Culture?

Recognition has a profound impact on workplace culture, shaping both employee morale and overall organizational atmosphere. When employees feel acknowledged and valued for their contributions, it creates a positive environment where individuals are more motivated, engaged, and committed to their work. Recognition reinforces desirable behaviors, aligns efforts with company goals, and encourages a sense of belonging and accomplishment. This positive reinforcement builds a culture where employees collaborate, innovate, and strive for excellence. A culture of recognition enhances employee satisfaction and loyalty, reducing turnover and creating a supportive work environment. Integrating recognition into the workplace will enhance individual performance and cultivate a cohesive and thriving organizational culture.

Will Recognition Improve Employee Engagement or Employee Experience?

Recognition can significantly improve both employee engagement and employee experience, but they influence different aspects of the workplace:

1. Employee Engagement: Recognition boosts engagement by making employees feel valued and acknowledged for their contributions. When employees receive recognition, they’re more likely to be motivated, committed to their roles, and invested in the company’s goals. It creates a positive feedback loop where employees strive to perform well to receive more recognition, enhancing overall engagement levels.
2. Employee Experience: Recognition enhances the overall employee experience by contributing to a positive workplace culture. It improves job satisfaction and fosters a sense of belonging. Feeling appreciated impacts the overall experience at work, making it more likely to enjoy roles, stay with the company, and advocate for it.

How Will Recognition Help With Recruiting and Retention?

Showing meaningful, consistent appreciation to workers is a simple and effective way to create an attractive company culture. Recognition plays a crucial role in both recruiting and retention by creating a positive and engaging workplace culture. Here’s how:

Recruiting

1. Attractive Workplace Culture: Companies known for recognizing and rewarding their employees are often seen as desirable places to work. This positive reputation can attract top talent who are seeking a supportive and appreciative work environment.
2. Employee Testimonials: Current employees who feel valued are more likely to share their positive experiences with potential recruits, enhancing your company’s reputation through word-of-mouth and online reviews.
3. Differentiation: In a competitive job market, having a robust recognition program can set your company apart from others that may not offer similar levels of appreciation, making your organization more appealing to candidates.

Retention

1. Increased Job Satisfaction: Regular recognition helps employees feel valued and appreciated, leading to higher job satisfaction. Satisfied employees are less likely to seek opportunities elsewhere.
2. Motivation and Engagement: Recognition boosts employee motivation and engagement by acknowledging their hard work and achievements. Engaged employees are more committed to their roles and the organization, reducing turnover.
3. Personal Growth: Recognition often includes feedback on performance, which helps employees understand their strengths and areas for improvement. This supports their personal and professional growth, making them more likely to stay with the company.
4. Building Loyalty: Recognizing employees develops a sense of loyalty to the organization. This emotional connection can be a strong deterrent against leaving for another job.
5. Positive Work Environment: A culture of recognition fosters a supportive and collaborative work environment. This positive atmosphere can contribute to employee well-being and job satisfaction, which in turn enhances retention.

How Does Recognition Affect Our Bottom Line?

This is often the most critical for decision makers and the make or break point. We like to take a different approach and answer this from the other side and ask how costly it can be to not have an employee recognition program. Here’s a thought experiment, a SHRM report states: “The average cost-per-hire for companies is $4,129, and it takes 42 days to fill an open position. The facts, companies with recognition programs that are highly effective at improving employee engagement have 31% lower voluntary turnover.”

Recognition in the workplace can significantly impact a company's bottom line by enhancing employee satisfaction, retention, and productivity. When employees receive recognition for their contributions, it fosters a positive work environment where they feel valued and motivated. This increased job satisfaction often leads to higher levels of engagement and commitment, reducing turnover rates and the associated costs of hiring and training new staff. Employees who feel appreciated are more likely to be productive and go above and beyond in their roles, which can improve overall performance and drive business results. The positive effects of recognition also extend to team dynamics and organizational culture, creating a more collaborative and innovative atmosphere. Investing in recognition programs can lead to a more motivated workforce, higher quality work, and better financial outcomes for the company.

By now, it’s a well-known fact that employees aren’t feeling valued at work. Honestly, there really is no such thing as “too much recognition.” If you really want to keep your employees, motivate them through recognition. That simple validation has the power to drive productivity through the roof.

Create a recognition-rich culture and schedule a demo with Assembly to learn more.